When it comes to local issues, like say, housing, Ottawa can feel a million miles away. This year’s recently released federal budget, however, includes a few key components that may actually hit close to home.
If you scroll down to the bottom of the budget’s second chapter, called Communities Built for Change, you will find a proposal to invest more than $11.2 billion over 11 years in affordable housing. This is our new National Housing Strategy, and it may well have a big impact on our Island’s housing stock and the diversity of our population.
One component of this strategy is a renewed Federal-Provincial-Territorial partnership in housing. As the Federal Government is quite removed from any immediate community needs, they are looking to strengthen their ties to the provinces and territories, in order to have a tighter grasp on their needs and better allocate funds. Approximately $3.2 billion over 11 years will be earmarked for provinces and territories to support key priorities for affordable housing. These may include the construction of new affordable housing units, rent subsidies, and other measures to make housing more affordable.
Another component is a new National Housing Fund. It will address critical housing issues and prioritize support for vulnerable citizens, including: seniors; indigenous peoples; survivors fleeing situations of domestic violence; persons with disabilities; those dealing with mental health and addiction issues; and veterans. This fund will receive an investment of $5 billion over the next 11 years and will:
ν Encourage greater collaboration and investment in housing
ν Expand direct lending for new rental housing supply and renewal
ν Support innovations in affordable housing
ν Preserve the affordability of social housing
ν Support a strong and sustainable social housing sector
My hunch is that the direct lending for new rental housing supply and renewal is likely to have the biggest impact. This will leverage billions of dollars available for investment in affordable housing. It will provide municipalities and other housing partners sustained and improved access to low-cost loans for the construction of new affordable housing, through the Affordable Rental Housing Financing Initiative. Further details about the National Housing Fund will be announced as part of the launch of the National Housing Strategy later this year.
The impact of all this here, will ultimately be determined by our municipal government, who will be charged with the task of applying for funding for these initiatives. If the municipality doesn’t think it is a priority for us as a community, then the federal government will not be sending money our way. If islanders see affordable and diverse housing as a priority, they can push our council by writing letters and showing up to council meetings to make it so.
